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The Armed Services Board of Contract Appeals recently ruled that the Defense Contract Audit Agency (DCAA) method for analyzing the reasonableness of a contractor's executive compensation under FAR Part 31 is inadequate to support unallowability determinations

In a decision dated January 18, 2012, the Armed Services Board of Contract Appeals agreed with the Appellant that the Defense Contract Audit Agency (DCAA) method for analyzing the reasonableness of executive compensation under FAR 31.205-6 was subject to "statistical flaws" which rendered Government affirmative claims of nearly $600,000 untenable

On October 19, 2011, the Armed Services Board of Contract Appeals (Board or ASBCA) issued a decision clarifying whether the $10,000 waiver threshold in FAR 42.709-5(b) applies to individual unallowable costs or the sum of all unallowable costs

On September 20, 2011, the Department of Defense (DoD) issued a final rule (76 Fed. Reg. 58144) to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement section 802(b) of the Fiscal Year (FY) 2007 National Defense Authorization Act (NDAA) (Pub. L. 109-364) and section 815 of the FY 2008 NDAA (Pub. L. 110), which, together, modified 10 U.S.C. 2321(f)(2) with respect to the presumption of development at private expense for major systems

On May 18, the U.S. Department of Defense issued an interim rule (76 Fed. Reg. 28,856) for immediate implementation, defining contractor business systems and authorizing contracting officers (COs) to withhold a percentage of payments, under certain conditions, when a contractor's business system contains a "significant deficiency."

On May 18, 2011, the Department of Defense (DoD) issued an Interim Rule (76 Fed. Reg. 28,856) for immediate implementation, defining contractor business systems and authorizing contracting officers (COs) to withhold a percentage of payments, under certain conditions, when a contractor's business system contains a "significant deficiency."